Mountain Protocol has successfully completed an $8 million Series A financing round led by Multicoin Capital.
Multicoin Capital led a Series A financing of $8 million, which Mountain Protocol has successfully completed. Coinbase Ventures, Castle Island Ventures, and others were among the investors who contributed to the funding.
The firm offers the yield-earnings stablecoin USDM, pegged at one dollar to one US dollar. The company maintains its running accounts separately from the ERC-20 rebasing token, which currently generates approximately 5% of its income.
In October 2023, Mountain Protocol launched its USDM token with an initial quantity of 50,000,000. Mountain Protocol’s co-founder and CEO, Martin Carrica, informed the media that the firm intends to utilize the extra funding to increase that figure by a factor of ten, to $500 million.
According to Carrica, Ethereum is home to approximately 40% of the total token supply.
Following an announced $4 million seed round in September of last year, the latest fundraising round—a pure equity investment—brings the total raised to $12 million.
Carrica elaborated by saying that decentralized autonomous organizations (DAOs) are the primary users of the stablecoin for treasury management, and that other use cases will soon be able to access it following the next fundraising round.
We will extend the USDM service to additional blockchains like Solana, Aptos, Sei, and Monad before reaching out to fintech companies, cryptocurrency exchanges, and market makers. We will also integrate additional DeFi protocols.
Twenty percent of market makers’ and dealers’ holdings are in stablecoins. Carrica stated, “They are very interested in doing the swap,” if they can maintain their holdings of yield-bearing stablecoins and continue with their operations.
Several cryptocurrency firms have introduced new stablecoins this year, leading to the stablecoin market’s rapid expansion. In an effort to challenge market leaders like Tether and Circle, Ripple introduced a dollar-pegged stablecoin in April.
Meanwhile, Nick Van Eck, the son of seasoned investment manager Jan Van Eck, launched VanEck Scion, an investment firm that raised $12 million for its stablecoin Agora, and last month, Anzen, an issuer of stablecoins backed by real-world assets, expanded to multiple chains and protocols after raising $4 million.
The demand for stablecoins has grown to the point that the volume of stablecoins on Ethereum has exceeded $1 trillion.